Mr. Michael Moskowitz reports

NORTHSTAR GAMING REPORTS RECORD WAGERING AND GAMING REVENUE IN SECOND QUARTER OF 2023

Northstar Gaming Holdings Inc. has released its financial results for the three-month and six-month periods ended June 30, 2023.

"Our second quarter growth was driven by increases in accounts and wagering activity as our differentiated, premium product continues to attract and engage customers," said Michael Moskowitz, chair and chief executive officer of Northstar. "Our integrated editorial content is proving to be increasingly popular with customers looking for insights to improve their betting experience. As the business scales, we are delivering improved financial performance through operating leverage with revenue growth expected to continue to outpace expenses."

Financial highlights for the second quarter ended June 30, 2023:

• Total wagers were $160.1-million in Q2 2023, an increase of 15 per cent compared with $139.5-million in Q1 2023.
• Gross gaming revenue was $5.5-million in Q2 2023, an increase of 26 per cent over $4.4-million in Q1 2023.
• Gaming revenue, which is net of bonuses, promotional costs and free bets, was $4.6-million in Q2 2023, an increase of 27 per cent from $3.6-million in Q1 2023.
• Gross margin was $1.9-million in Q2 2023, or 40 per cent of gaming revenue, an increase of 61 per cent over Q1 2023, when gross margin represented 32 per cent of gaming revenue.
• Slapshot Media Inc. contributed $3-million of total wagers and $100,000 of gaming revenue in the second quarter following its acquisition by the company on May 8, 2023.

Operating highlights:

• The company acquired Slapshot Media, a Canadian i-gaming marketing and managed services company that specializes in providing managed services to Spreads.ca. The acquisition is expected to open up the Canadian market to the Northstar brand beyond Ontario, materially expanding the company's addressable market.
• Readership of the company's Insights content -- proprietary editorial features offered seamlessly to customers within the Northstar Bets website and app -- increased by 55 per cent in the second quarter compared with Q1 2023. These figures do not include readership generated externally, such as original Northstar Bets content placed at Torstar media properties.
• The Northstar Bets virtual casino game portfolio recently surpassed 500 titles, an increase of more than 50 per cent since the start of this year. The company continues to source quality content from new gaming vendors, demonstrating its commitment to providing an immersive and entertaining experience.

"We expect the marketing and product initiatives we have under way to continue to drive growth throughout the remainder of this year and into 2024," added Mr. Moskowitz. "The Slapshot Media acquisition we completed in the second quarter was a very important milestone in our goal of expanding the Northstar Bets brand outside of Ontario starting in the fall and further leveraging our existing infrastructure and content."

The company has issued the following shares to Blue Sky Trading & Consulting Ltd. pursuant to a shares for services arrangement: 141,026 common shares at a price of 39 cents per share and 163,690 common shares at a price of 34 cents per share. All shares issued pursuant to this arrangement were legended and restricted from trading for a period of four months and one day from the date of issuance.

Additional information

For additional information, please refer to Company's condensed consolidated interim financial statements for the three-month and six-month periods ended June 30, 2023, and the corresponding interim management discussion and analysis. These documents are available on SEDAR, and on the company's corporate website.

About Northstar Gaming Holdings Inc.

Northstar proudly owns and operates Northstar Bets, a made-in-Ontario casino and sports book gaming platform that provides players with a uniquely local, premier user experience. The Northstar Bets sports book provides real-time news, stats, analysis and scores directly in the betting environment, along with the most popular on-line casino games. Northstar also provides managed services to Spreads.ca, an i-gaming site owned and operated by the Abenaki Council of Wolinak.

A Canadian company, Northstar is uniquely positioned to become a convergence leader in the intersection of sports media and sports wagering thanks to its partnerships and agreements with leading media companies. Northstar is committed to operating at the highest level of responsible gaming standards.

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